This One Crypto Coin Defied Yesterday’s Market Crash

LINK remains one of the assets to defy the market gravity this March, as prices went vertical both in dollar and BTC terms. LINK remains well above $4, breaking its all-time records with peak prices at $4.68.

LINK also keeps adding Satoshis, reaching above 0.0005 BTC, with enthusiastic expectations of a bigger rally. This is not the first time LINK has defied the market, with rallies that were once deemed short-term pumps, or were even due to trading anomalies based on amateur order mistakes.

But LINK has gone through multiple rounds of appreciation, with the last leg upward raising renewed enthusiasm. LINK is viewed as possibly discovering a new price range.

Iron £ord $hillink@shillink

The response of in this massive market wide dump has made me even more bullish than ever. It really is happening isn’t it frens?

See Iron £ord $hillink’s other Tweets

LINK also showed its mettle in resisting the biggest market dump for the year, where BTC wiped out close to 10% of its price overnight. LINK is just outside the top 10 of crypto coins, but defied the massive slide of top 10 market capitalization. During the late Sunday sell-off, the top 10 of coins erased more than $16 billion in value, matching the market cap of the United Airlines company, noted Timothy Peterson.

Timothy Peterson@nsquaredcrypto

$16 billion in Top 10 market cap lost in the past 24 hours. That’s the size of United Air Lines ($UAL)

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Based on volume reports, LINK is still relying on Binance for the bulk of its adjusted volumes. Binance spot trading has liquidity above $475,000 per day. But based on total volumes, the Binance derivatives market is what drives the LINK market price to even more rapid appreciation. Adding futures markets means LINK can respond much more rapidly to sentiment, especially after becoming one of the few crypto assets to offer a hedge against BTC price risk.

LINK AMONG BIGGEST CRYPTO GAINERS, GROWING 10 TIMES SINCE 2017

LINK is not immune to correction, as the price retreated a bit to $4.26. The asset also showed signs of following the deepening slide. But until now, LINK is also among the most successful crypto tokens. As a latecomer, LINK even defied most of the 2018 bear market, and…

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Bitcoin Suddenly Goes Into Meltdown

Bitcoin and cryptocurrency prices went into meltdown over the weekend, with almost $30 billion suddenly wiped from crypto markets.

The bitcoin price lost a staggering 18% over the last two days, dragging the wider cryptocurrency market down and causing double-digit percentage losses for the likes of ethereum, Ripple’s XRP, bitcoin cash, and litecoin.

The cause of the sudden sell-off wasn’t immediately clear, though some have pointed to wider stock market and commodity turmoil in the face of the spreading coronavirus.

On Sunday evening, bitcoin was seen trading as low as $7,684 per bitcoin on the Luxembourg-based Bitstamp exchange.

On Saturday, bitcoin had looked poised for a rally, climbing as high as $9,192 before beginning it’s steady plunge.

Meanwhile, oil prices crashed by 30% yesterday after Opec members, led by Saudi Arabia and Russia, failed to agree on deeper production cuts to offset weaker demand caused by the coronavirus outbreak, effectively sparking a price war.

Major U.S. index futures, including the S&P 500, the Dow, and the Nasdaq, all plunged around 5% following the oil cartel’s decision.

The latest fall in the bitcoin price will all but destroy any remaining expectation that bitcoin has begun acting as a so-called safe-haven asset, which are expected to move higher in times of greater risk and uncertainty.

“Bitcoin is down 8% in the last day, much more than global equities,” Nobel prize-winning economist and outspoken bitcoin critic, Nouriel Roubini, said last night via Twitter.

“Another proof that bitcoin is not a good hedge versus risky assets in risk-off episodes. It actually falls more than risky assets during risk-off.”

Some bitcoin and cryptocurrency watchers tried to downplay the crypto market meltdown, urging bitcoin investors to take a long-term view.

“For those who have long term investment horizons, bitcoin is absolutely a buy during these dips,” Jehan Chu, co-founder of blockchain startup investor Kenetic Capital, told CNBC.

“We can expect more of this volatility sparked by macro health and financial shocks, but ultimately long term investments in the digital future, and it’s key asset bitcoin, will be a winning strategy.”

Bitcoin has been battling against falling trading volumes and…

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Ethereum

Analyst Who Predicted Bitcoin’s Rally to $9,000 Says Ethereum Is Preparing to Explode

Bitcoin’s and Ethereum’s strong surge to kick off 2020 has caught many traders aback. Case in point: each leg higher in the price of BTC during January and February was marked by dozens of millions of dollars worth of short liquidations on margin trading platforms like BitMEX.

While the majority seem to have been caught off guard, one trader called the crypto market’s then-emerging uptrend: Tyler “Sawcruhteez” Coates. Just a day after New Year’s Day, the prominent trader claimed that Bitcoin was starting to show signs it was forming a textbook Wyckoff Accumulation and Spring pattern. The pattern, Sawcruhteez suggested, implied BTC was going to hit $9,200 in the middle of January.

And that it did. By January 17th and 18th, the leading cryptocurrency had passed above the key psychological and technical resistance of $9,000, leading Ethereum and the rest of the altcoins higher.

Now, he thinks ETH is preparing to explode higher.

Top Analyst: Ethereum Could Soon Surmount $300

Sawcruhteez recently noted that the second-largest cryptocurrency, ETH, is showing clear signs that it has recently bottomed and is preparing to reverse higher to new local highs from here: the price recently bounced off a two-month-long uptrend that has supported the steep rally, while crossing above key exponential moving averages.

This, he claims, gives the cryptocurrency the potential to rally 50% to 2019’s high of $360 in the coming months.

Tyler D. Coates@Sawcruhteez

at $232…don’t mind if I do 🙂

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Not Entirely Unfounded

Sawcruhteez’s optimism about Ethereum isn’t entirely unfounded; there are others that are suggesting that per their analysis, the top cryptocurrency is preparing to surge higher, or at least will soon put in a strong bottom.

Su Zhu, the CEO at forex- and crypto-focused hedge fund Three Arrows Capital, recently noted that…

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The Coronavirus Will Send the Bitcoin Price to $100,000 in 2020 – Max Keiser

Bitcoin (BTC) will reach $100,000 and Jamie Dimon will be “begging” the United States Federal Reserve for money to buy some.

Those were just two of the predictions from Max Keiser on March 5, as the coronavirus outbreak sees financial markets tumble again.

Keiser: 2020 is “part two” of the 2008 crisis

Speaking on the latest edition of his RT news magazine, The Keiser Report, the well-known Bitcoin proponent said that global panic would have a profound impact on Bitcoin uptake this year.

2020, he explained, was “part two of the global financial crisis” which originally spawned the Bitcoin whitepaper in 2009.

“…Now Bitcoin will experience part two of the global financial crisis — it’s already close to $10,000 a coin,” he told fellow presenter Stacey Herbert.

“This is the global financial crisis that will catapult the price to $100,000 and beyond.”

As Cointelegraph reported, Bitcoin saw losses in line with traditional markets including gold last week but has made gains in recent days.

Jamie Dimon, Peter Schiff to “beg Fed for money”

Referencing a dream which JPMorgan CEO and notorious Bitcoin skeptic Jamie Dimon claimed he had last month, Keiser continued that even he would soon privilege Bitcoin over fiat.

Dimon allegedly dreamt that coronavirus infected attendees of the World Economic Forum in Davos. While the victims “spread” the disease afterward, he appeared happy — possibly sarcastically — that it had killed the world’s most powerful financial figures.

“The only good news from that is that it might have just killed the elite,” CNN quoted him as saying at the time.

Ironically, it was at Davos in 2018 that Dimon denied to Cointelegraph that he disliked Bitcoin.

Keiser meanwhile was wholly unconvinced.

“He’s confusing the coronavirus with the Bitcoin virus; the same thing with Peter Schiff,” he explained.

“Their minds are being hacked by the Bitcoin virus. Soon Jamie will be a blathering idiot on the ground begging the Fed for money to buy Bitcoin. He’s going to turn into a kind of street urchin. Same with Peter Schiff.”

Gold bug Schiff also continues his criticism of Bitcoin, claiming its…

Continue reading at COINTELEGRAPH.com

 

 

 

A Multi-Millionaire Venture Capitalist Made A Massive Bet On Bitcoin

Bitcoin is notoriously volatileoften moving more in a single day than most stock indexes do in a week.

The bitcoin price regularly swings wildly and unpredictably but that’s not stopping some bold investors from betting big on bitcoin—hoping it will make similar gains to the multi-million percentage increase it recorded between 2010 and 2020.

Now, prominent venture capitalist Tim Draper has revealed he pulled out of stock markets six months ago as they “got frothy” and he has significantly increased his bitcoin and crypto holdings over the last year—some of which have rocketed higher in recent months.

“I have been out of the market for about six-months. It felt pretty lofty for me and I moved most of my stuff to bitcoin and crypto,” Draper told CNBC, adding bitcoin is “kind of a safe-haven now.”

“I think bitcoin in 2022 or the beginning of 2023 will hit $250,000 and that’s a big move from where it is here,” Draper said, standing by a prediction he made previously. “I think the reason there is that bitcoin will be the currency of choice.”

Draper declined to disclose what percentage of his wealth is tied up in bitcoin but said it’s “a lot, it’s a lot, a lot.”

Draper pointed to improvements to the bitcoin and cryptocurrency user experience and technical upgrades as a potential catalyst for its move higher.

“Right now bitcoin’s not that easy to move around but eventually it will be. And then people will ask themselves, ‘do I want to pay the banks 2.5% to 4% every time I swipe my credit card, or do I want a currency that’s frictionless, open, transparent, global and not tied to any political force,” Draper said, adding, “at some point people are going to make that switch and bitcoin will be the big winner.”

“I’m just a believer—and I look and I say: ‘hey, this is just better.’ Long term, people move to things that are better.”

“I think the world is going to be much better off because of this decentralized movement. And it’s not just bitcoin. Bitcoin is decentralized currency but it’s decentralized everything.

“Some politicians are clinging to the past and their tribalism but most of the best politicians are moving towards this new world that’s global and open and transparent. That’s going to be the new world. It’s going to be a more beautiful, more loving and more peaceful world, but you’re goin to see a lot of tension getting to that world.”

Michael Bloomberg, the billionaire former New York mayor-turned-U.S. presidential hopeful, has released a financial reform plan that promises to provide “a clear regulatory framework for cryptocurrencies,” while some plucky young companies are hoping to unseat the likes of social media giant Facebook with a decentralized alternative.

Elsewhere, calls for the U.S. to begin development of a so-called digital dollar have been growing louder over recent months.

Ahead of Draper’s comments, Berkshire Hathaway’s Warren Buffett, the legendary investor known as the Oracle of Omaha, promised he would “never” own bitcoin or any other cryptocurrency as they have “no value,”—something Draper said was motivated by Buffett’s traditional financial investments.

“[Buffett] sees a huge threat to his holdings [from bitcoin] … 50% of his holdings are banks and insurance companies so clearly he’s not going to want this new currency. Everyone that’s studied it knows it so much better than what’s out there,” adding banks will become a relic of the past.

“I wouldn’t hold banks or insurance companies right now if you paid me to. They are not in good shape. For the next ten years things are going to change very big,” Draper said, pointing to bitcoin’s significantly higher popularity among young people.

Meanwhile, Draper suggested…

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Elon Musk Reveals His Favorite Cryptocurrency

SpaceX CEO Elon Musk has finally picked one out of the thousands of cryptocurrencies in existance and declared that it is the best. And it’s not Bitcoin.

It’s Dogecoin.

Dogecoin is a cryptocurrency that was invented as a joke by Jackson Palmer and Billy Markus—but it took on a life of its own. With the Japanese dog breed Shiba Inu as its mascot and an entire language built around the coin, “wow, such coin, many profit,” it developed a cult following.

It’s not the first time Musk has showed his love for Dogecoin. He previously changed his Twitter bio to reflect that he was the CEO of Dogecoin and once tweeted “throw a dogecoin to ur witcher” before deleting it shortly after.

Today, he first tweeted that “Dogs rock,” with an image of a dog celebrating its birthday without any concept of numbers. Underneath it he added that dogs “have the best coin.”

Elon Musk

@elonmusk

Dogs rock

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Elon Musk

@elonmusk

They have the best coin

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Musk has spoken about Bitcoin and cryptocurrency too but in peculiar ways. He once tweeted, “Cryptocurrency is my safe word,” before later adding that, “Bitcoin is not my safe word.”

He has also spoken about Bitcoin too, saying…

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Top VC Warns Over Coronavirus Panic—Here’s His Surprise Bitcoin Strategy

The spreading coronavirus, which has now killed more than 3,000 people worldwide, has caused global markets to crash—even appearing to hit safe-havens such as gold and alternative assets like bitcoin and other cryptocurrencies.

U.S. stocks rallied initially this morning but have struggled to hold on to early gains after one of the worst weeks on financial markets since the 2008 financial crisis.

Now, top Silicon Valley venture capitalist and former Facebook executive Chamath Palihapitiya has warned traders against trying to profit off short term market trends but called for investors to put a small percentage of their net worth into “uncorrelated” assets—such as bitcoin.

“I don’t think when you wake up and see a coronavirus scare and the Dow down 2,000, you should not be going in and buying bitcoin. That is an idiotic strategy,” Social Capital CEO Palihapitiya told CNBC’s Squawk Box last week, adding bitcoin is, though, a “fantastic hedge,” as “every other financial instrument is correlated … except bitcoin, which is fundamentally uncorrelated.”

“I think a reasonable strategy is to say 1% of my net worth should be in something completely uncorrelated to the world and how the world works. You quietly over some period of time accumulate a position and then just never look at it again and hope that that insurance under the mattress never has to come due. But, if it does, it will protect you,” said Palihapitiya, who left Facebook in 2011 with the badly-aged parting message “don’t be a douchebag.”

Bitcoin recorded a strong start to 2020climbing back above the psychological $10,000 per bitcoin mark, first appearing to be boosted by geopolitical fears surrounding the escalating tensions between the U.S. and Iran and then apparently gaining on fears the coronavirus could knock global trade.

With bitcoin’s latest fall in the face of global market turmoil, the theory that it had begun acting as a safe haven along with gold and the Japanese yen is looking overblown.

“Cryptocurrencies have failed to act as a safe haven during the rapid spread of the coronavirus due to the fact investors have likely decided to leverage down as fast as they can to compensate for any other losses,” said Christel Quek, cofounder of BoltGlobal. “We could expect more knee-jerk reactions from investors if more virus cases are reported as they all look to keep their money safe and avoid any more damage in what is an increasingly fragile marketplace.”

“Bitcoin has been uncorrelated to other asset classes,” bitcoin and crypto analyst at Coinist Research, Luke Martin, said via Twitter.

“If stocks drop, this does not mean bitcoin has to pump. If gold prices climb, this does not mean bitcoin will rise with it every time,” Martin said, adding “narratives will come and go.”

Last week, major stock markets recorded their worst weekly performance since the 2008 financial crisis, with $1.5 trillion wiped from the value of global shares.

This morning, the influential think tank the Organisation for Economic Cooperation and Development (OECD) has warned the global economy could grow at its slowest rate since 2009 this year due to the coronavirus outbreak, forecasting growth of just 2.4% in 2020, down from…

Continue reading at FORBES.com

 

 

The Coronavirus Nightmare Continues As Bitcoin Loses $1500 This Week

Bitcoin lost a serious chunk of its Dollar value this week. Down about 12% over the past seven days, the cryptocurrency is currently trading at around $8,700. It’s essential to see where it goes from here. From above, there’s the 200-days moving average at $8,800, which has now turned to resistance. Bitcoin hasn’t closed a day below the 200MA since January 27th this year, and it’s entirely possible for today to be the first day. This would probably spell trouble for the bulls.

All of this comes amid the growing spread of the coronavirus. Confirmed cases are coming from all over the world from countries such as the US, Italy, the United Kingdom, and so forth. This has undeniably taken its toll on the entire global market. In China, reports have it that the country will delay the launch of its central bank digital currency mainly because of the virus, though they still expect to have it launched in 2020.

The S&P 500 marked its quickest correction in history. The index lost more than 10% in a little more than a week while all other major indexes are also declining rapidly, day after day.

Besides Bitcoin, altcoins felt the impact as well. All large-cap cryptocurrencies are trading in the red over the last seven days. More than $24 billion were wiped off the total capitalization. On the other hand, Bitcoin’s dominance has increased. This further signals the overall troublesome situation for altcoins, which struggle to claim new grounds.

In any case, health officials across the globe expect the situation to probably get worse before it gets better. With this said, it’s interesting to see how Bitcoin will respond to the catastrophe in the traditional markets.

Market Data

Market Cap: $246B

24H Vol: $158B

BTC Dominance: 64%

BTC: $8,660.47 (-2.69%)

ETH: $224,68 (-4.19%)

XRP: $0.235 (-3.45%)

Crypto_post

Wall Street Facing Its 6th Red Day: Even President Trump Couldn’t Ease The Coronavirus Panic. Global stock indexes have crashed severely over the past ten days. The S&P 500 marked its quickest downward correction in history. This comes at times of economic uncertainty as the coronavirus continues to spread. Meanwhile, Bitcoin has also lost about $1,500 over the past week.

Invest 1% In Bitcoin As Warren Buffett Is Wrong, Says Virgin Galactic Chairman Chamath Palihapitiya. The Chairman of Richard Branson’s Virgin Galactic, Chamath Palihapitiya, has said that everyone should have at least 1% of their portfolio invested into Bitcoin. According to him, Warren Buffett isn’t right with his stance on the matter.

Short Bitcoin ETP (SBTC) Launches On Germany’s Second-Largest Exchange. Boerse Stuttgart, Germany’s second-largest exchange, has launched a new exchange-traded product (ETP) associated with Bitcoin. Called SBTC, it will allow traders to effectively short the asset, making profits as its price declines.

China Delays Development On National Cryptocurrency As Coronavirus Epidemic Continues. Earlier this year, Chinese officials said that they’d be the first to launch a central bank-backed cryptocurrency. However, as the coronavirus continues to spread, the project will be delayed. It is still expected to become a reality in 2020.

CME Bitcoin Futures Records Over $1B In Daily Volume As The Interest Surges. The increase in Bitcoin’s price throughout 2020 was followed by a notable surge in the volume of future traded contracts. More specifically, CME’s Bitcoin futures contract has recorded days with over $1 billion in traded volume.

Cash Of The Future? The Simpsons Use Jim Parsons To Explain Cryptocurrency And Blockchain. The Simpsons, one of the most popular animated mainstream TV series in the world, dedicated a segment on cryptocurrencies and Bitcoin. In it, a character presented as Jim Parsons explained how digital currencies worked.

Charts

This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Chainlink – click here for the full price analysis.

The post The Coronavirus Nightmare Continues As Bitcoin Loses $1500 This Week: The Crypto Weekly Market Update appeared first on CryptoPotato.

Source: Crypto Potato

4 reasons why analysts are still bullish on Bitcoin despite brutal 15% crash

To put it lightly, Bitcoin has not fared well over the past weeks. The price of the leading cryptocurrency, ever since rejecting the key $10,500 resistance as if it was a stone wall, has acted weak, losing support and support.

After two weeks of bearish price action — punctuated by a steep drawdown over the past three days that took Bitcoin from $10,000 to as low as $8,520 — it should come as no surprise that investors are once again fearing a return to a bear market.

Though, a number of analysts are still optimistic, touting an array of fundamental and technical reasons as to why they think Bitcoin has an upward trajectory in the coming months.

Reason #1: Macro support to be found around $8,500

While Bitcoin is still dramatically lower than it was just days ago, it decisively bounced off the $8,500 support (depicted below) and is now trading at $8,925 as buyers have stepped in at the eleventh hour.

This relatively strong bounce has been seen as bullish by a number of analysts; at and around  $8,500 there exists a confluence of macro supports and key technical supports, meaning a reversal in this region supports the bull case.

Filb Filb, the pseudonymous crypto trader that predicted Bitcoin would bottom in the mid-$6,000s and would subsequently reverse into the $9,000s in the start of 2020, explained this further when he listed out the five key support levels around $8,500:

  • 200-day simple moving average at $8789
  • The point of control of the whole move at $8600
  • The 50 percent Fibonacci retracement level
  • The 20- and 50-week moving average at c.$8500
  • The CME gap.

Reason #2: Emission shock of Bitcoin halving is just months away

Even if Bitcoin doesn’t find support at $8,500, the block reward halving — a once-every-four-years event that sees the amount of BTC issued per block get cut in half — is rapidly approaching; current estimates suggest the halving will activate at the start of May 2020.

The so-called “stock-to-flow” price model made by PlanB, a pseudonymous quantitative analyst that works for a European institution, suggests that scarcity is closely linked with BTC’s market value.

The May halving, the model suggests, will imbue Bitcoin with a fair value somewhere around $100,000 — over 1,000 percent above the current market price of the asset.

As crazy as this sounds, PlanB has found that the model is accurate to an R squared of 0.9372, which suggests that the relation between Bitcoin’s scarcity and its market price is anything but a coincidence.

This makes sense from a numbers perspective; if the amount of BTC inflation decreases and the amount of demand stays the same or increases, prices should naturally trend higher.

Reason #3: Retail interest is increasing

Data shows that retail interest in cryptocurrency is on the rise — something that aided Bitcoin’s rally from $1,000 to $20,000 in 2017.

CryptoSlate compiled the four key reasons to back this assertion in a previous report, though the summary of them are as follows:

  • Demand for Grayscale’s Bitcoin Trust (GBTC), a relatively easy way for the American public to get exposed to cryptocurrency, has increased, evidenced by volumes on OTC markets.
  • Volume on Coinbase has increased over the past two months. Coinbase has long been seen as the home of retail crypto investors.
  • Google Trends for certain terms like “Buy Bitcoin” and “halving” have started to trend higher.
  • Mainstream media are starting to cover cryptocurrency once again.

Reason #4: central banks continue to prove Bitcoin’s value

From a perspective of pure macro fundamentals, central banks continue to…

Continue reading at CRYPTOSLATE.com

 

 

Why Didn’t Bitcoin React Like a Safe Haven Asset to Coronavirus Fears?

Fears that the novel coronavirus originating in Wuhan, China could grow into a pandemic has not translated into a flight to Bitcoin. Is the OG crypto really a safe haven asset?

Coronavirus Fears Cause Global Sell-Off

The spread of COVID-19 to hotspots in Italy, Iran, and South Korea has led to a sell-off of risk assets worldwide and a flight to gold.

The Dow was down almost 900 points on Feb. 25, following similar falls the day before. The S&P 500 closed over 3% lower.

Markets in Japan, the UK, and Australia have all plunged early this week as fears heighten that the spread of COVID-19 could end in a pandemic with the resultant economic impact. Gold reached seven-year highs on Monday, as the traditional safe haven asset benefited from the flight from risk-on assets.

That flight has not driven Bitcoin prices up, however.

Bitcoin is down for the week from over $10,000 to around $9,150 at press time, according to CoinMarketCap.

Bitcoin 7-day price movement
Courtesy CoinMarketCap, Bitcoin 7-day price movement

The Safe Haven Narrative

Bitcoin’s credentials as a hedge against risk have long been debated. Proponents of the narrative have pointed to recent price activity that suggests investors liken digital gold to its precious metal namesake.

In early January, a U.S. airstrike in Baghdad killed the head of Iran’s elite Quds Force, Qassem Soleimani. Iran retaliated with missile strikes against Iraqi bases housing American troops on Jan. 8.

With the world braced for a prolonged escalation of tensions, Bitcoin soared from under $7,000 to almost $8,500 for the week.

BTC price Jan. 1 to Jan. 8, 2020
Courtesy CoinMarketCap, BTC price Jan. 1 to Jan. 8, 2020

In mid-2019, as trade tensions between the U.S. and China threatened to boil over into a full-blown trade war, demand for Bitcoin, especially among Chinese investors fearing a devaluing of the Yuan, rose. From the May announcement by the Trump administration of a rise in tariffs on Chinese imports to August, BTC skyrocketed by over 100%.

Bitcoin was also trading for a premium in Argentina and Hong Kong, as investors sought refuge from hyperinflation and fears of geopolitical risk, respectively. Rayne Steinberg, Los Angeles-based crypto hedge fund Arca’s CEO told Bloomberg:

“Bitcoin is becoming the asset of last resort in areas of extreme currency devaluation and political uncertainty. In the last week alone, Bitcoin is up approximately 50% against the Argentine peso and trading at a significant premium on local exchanges. And they are not alone, joining the ranks of Venezuela, Hong Kong and Turkey who have also experienced similar shocks.”

Doubts Emerge Over Bitcoin as a Safe Haven Asset

As a global sell-off of equities points to investor fears over coronavirus fallout, Bitcoin is experiencing price activity that correlates with risk-on assets, not gold. The supposed safe haven asset story has not played out in response to the risks COVID-19 poses to the global economy.

As Mati Greenspan from Quantum Economics told Crypto Briefing:

“At this point in time, Bitcoin is trading very much inline with the stock markets and generally behaving like a risk-asset. Bitcoin is often used as a hedge against inflation, governments, and central banks. As coronavirus has yet to affect those things, there’s little reason to see it as a safe haven for now.”

Greenspan’s assessment is in line with the pattern that appears to be playing out, given the lack of response from Bitcoin to the worsening of the coronavirus outbreak.

While the crypto asset benefited from flights from hyperinflation and political turmoil – driven by government actions – it hasn’t received a boost from the uncertainty caused by the growing threat of a pandemic.

Does The Color of The Swan Hold the Key?

Notorious crypto skeptic, Nouriel Roubini, has argued that there are several crises that could threaten to derail the global economy.

Identifying simmering tensions between the U.S. and Iran and China, real-world costs of climate change, and the impact novel coronavirus could have on the Chinese – and therefore the global – economy, the economics professor has voiced concerns about a “white swan” event in the making.

A black swan event, a term made popular by Nassim Nicholas Taleb, is a wholly unknown and unpredictable event with potentially severe ramifications. Roubini is more concerned about white swan events, which are similarly significant, but which are entirely forecastable.

As the economist argued last week:

“Beyond the usual economic and policy risks that most financial analysts worry about, a number of potentially seismic white swans are visible on the horizon this year. Any of them could trigger severe economic, financial, political and geopolitical disturbances unlike anything since the 2008 crisis.”

The On-Again, Off-Again Safe Haven Asset?

Price history has demonstrated that the narrative that Bitcoin is a gold-like safe haven asset lacks the nuance to be predictive. Bitcoin has responded in line with gold and other safe haven harbors to certain events, but not others.

Commentators like Greenspan have identified that Bitcoin is attractive as a hedge asset when the risk is created by governments and poor economic policies.

While the economic impact of coronavirus could be severe, it is decoupled from…

Continue reading at CRYPTOBRIEFING.com